Arts Center, Red Cross Request Funds

NEWPORT NEWS — Officials with The American Theatre, the Peninsula Fine Arts Center and the American Red Cross went before the City Council earlier this week and made their cases for more money for new buildings and expansions.

But with Newport News fending off continued pressure from homeowners to cut taxes and city spending, it may not have been the best timing.

"With our financial future rather uncertain, this is not the year to make these kind of commitments," said Councilwoman Madeline McMillan.

The money for all three organizations won't kick in until the 2010 fiscal year, which starts July 1, 2009, but it is being requested through fiscal year 2014. The money would be part of the city's five-year capital improvement plan - a road map for larger, long-term projects - which will come to a vote next month.

The Peninsula Fine Arts Center on Museum Drive wants $1.125 million over five years starting with $225,000 in 2010 to renovate and expand its current site, doubling the square footage of the center. The Hampton Roads Chapter of the American Red Cross, at 4915 W. Mercury Blvd., wants $150,000, with a total of $750,000 over five years, for a new building. And The American Theatre in Hampton wants $150,000, with a total of $250,000 over five years, to expand its lobby and staging area and to build a new studio for more lectures and classes. "I am not prepared to do anything at this time," said Newport News Vice Mayor Charles Allen, referring to the upcoming budget discussion early next year and pressure from homeowners to cut real estate taxes. In addition, the city continues to struggle with its $535 million debt, a $212 million pension shortfall, and a $222.8 million shortfall in health, dental and life insurance benefits for retired city employees.

"Let's have tax relief first, and then consider luxuries," said Bob Killebrew, a member of the Newport News group RETRO, which last year pushed the city to cut its real estate tax rate from $1.20 per $100 of assessed home value to $1.10.

But homeowners in Newport News still have to pay more taxes because their assessment rose by double-digits in recent years. Home values are expected to increase 5 percent to 7 percent this year, according to early estimates.

RETRO wants the City Council to cut its real estate tax rate to 93 cents per $100 of assessed home value next year, which would return taxes to a level consistent with rates before the surge in assessments began in 2004, Killebrew said. "We just want the 93 cents and for the city to cut its deficit," Killebrew said. "And whatever they have to do to do this is OK with us."